Open AccessThe Factors Affecting the Market Value/Book Value and Profitability of REITs in Turkey
Author(s) -
Bilgehan Tekin
Publication year - 2021
Publication title -
journal of the asian real estate society
Language(s) - English
Resource type - Journals
ISSN - 1029-6131
DOI - 10.53383/100328
Subject(s) - real estate investment trust , real estate , business , capitalization rate , panel data , leverage (statistics) , return on equity , net asset value , return on assets , monetary economics , financial economics , economics , finance , profitability index , econometrics , machine learning , computer science
Increasing income level and the desire to live a more comfortable life incountries with an increasing population are constantly driving the demand for realestate. Real estate investment trusts (REITs) are capital market institutions that caninvest in real estate, real estate-based capital market instruments, real estateprojects, real estate-based rights and capital market instruments. In addition, theyestablish partnerships to realize specific projects, engage in other permittedactivities, and are organized by the Capital Market Law in Turkey. In this study, thefixed effects panel data regression model is used to determine the financial indicatorsthat affect the market value and profitability of the Turkey REITs that are traded inthe Borsa İstanbul REITs Index. The study covers 21 REIT companies. The data set is inthe period between 2010:Q1 to 2019:Q4 in the analyses. The results show that return onassets (ROA), return on equity (ROE), asset turnover, leverage, equity multiplier andcurrent asset turnover are effective on the market to book ratio (MBR). The ratios thataffect the ROA are MBR, ROE, acid-test, leverage, equity multiplier, EBITDA/sales andcurrent asset turnover. Moreover, the ratios that affect the ROE are the ROA, MBR,acid-test, asset turnover, leverage, and equity multiplier.